Stock markets around the world continued to be petrified by the European sovereign debt situation, especially with events coming to a head in Greece. Traders just love the headlines and resulting volatility, as they say, buy the dips and sell the rips, which is what is happening. However, more and more I am beginning to notice the market starting to differentiate between performance and lack therof. As a result, the 100% correlations across all asset classes are starting to dissolve, and as earnings season approaches, if the market starts to become unafraid of the Europe situation, profitability, growth, and results will matter, as they always do. Ultimately the European currency issue will get resolved, one way or the other, and stock markets around the world can resume whatever path the companies which comprise them deserve.
A battle which may last a long time: Google vs Facebook-http://online.wsj.com/article/SB10001424053111904194604576582803071402090.html?mod=WSJ_hp_LEFTWhatsNewsCollection
Interesting that a Japanese retailer can serve up growth: http://www.bloomberg.com/news/2011-09-20/underwear-model-shows-an-economy-how-to-grow-commentary-by-william-pesek.html
What a mess in the internet poker space- Full Tilt Poker A Ponzi Scheme?-http://online.wsj.com/article/SB10001424053111904106704576582741398633386.html?mod=WSJ_hp_LEFTTopStories
As always, on any company mentioned here, past performance is not a guarantee of future returns. One should research any investment and make sure it is suitable with your objectives, risk tolerance, risk profile liquidity considerations, tax situation, and anything else pertinent to your financial situation. Also, the CFA credential in no way implies investment returns will be superior for any charterholder.
Yale Bock, CFA
President, Y H & C Investments